MOBILE BROADBAND SPECTRUM IN INDONESIA

Dr Muhammad Budi Setiawan Director General of Resources and Standard Ministry of Communication and Information Technology Republic of Indonesia APAC Public Policy Forum - GSMA Mobile Asia Expo 2013 Shanghai, 27 June 2013

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Outlines 1. Background 2. Additional Bandwidth for 3G Operators in 2.1 GHz

• Impact of penetration 3G Service on The Economy • Band Plan 2.1 GHz and Market Share • 3G Spectrum Demand • 2.1 GHz Spectrum Auction (Block 11 and 12)

3. Digital Dividend in Indonesia • Impact of Broadband on The Economy • 700 MHz Band Plan • Strategy to Accelerate Digital Dividend in Indonesia

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Background 1. Spectrum is a valuable and limited resource.

2. The spectrum crunch in Indonesia.

3. Exponential growth in data traffic (phenomenon of I-phone, tablet, android, etc.)

4. The development of mobile broadband is higher than fixed broadband in developing countries.

5. Spectrum demand of mobile broadband:

• ITU-R Report M.2078 : 1280 – 1700 MHz additional bandwidth in 2020.

• FCC-US and OFCOM-UK : 500 MHz additional bandwidth in 2020.

• Australia : 150 MHz in 2015, 150 MHz additional bandwidth in 2020.

Currently Australia has 800 MHz bandwidth.

• Currently, Indonesia has 425 MHz effective bandwidth.

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NATIONAL MID-TERM DEVELOPMENT PLAN (RPJMN) : YEAR 2010 –2014

1. Penetration of Internet user : ≥ 50% population. 2. Penetration of Broadband user : ≥ 50% population. 3. Penetration of Digital TV coverage : ≥ 35% population. 4. Number of Districts/Cities served by Broadband networks : 75% from total. 5. Most likely Broadband Development will be covered by

Mobile Broadband. 6. Spectrum demand study for National Broadband

Development is urgently needed.

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MINISTRY OF COMMUNICATION AND INFORMATION TECHNOLOGY

REPUBLIC OF INDONESIA

Additional Bandwidth for 3G Operators in 2.1 GHz

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Impact of Penetration 3G Service on The Economy

Source : What is the impact of mobile telephony on economic Growth – Deloitte A Report for the GSM Association

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Band Plan 2.1 GHz

HCPT Axis TSEL TSEL XL ISAT ISAT XL Axis HCPT

1920 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 MHz

HCPT Axis TSEL TSEL XL ISAT ISAT XL Axis HCPT

2110 2115 2120 2125 2130 2135 2140 2145 2150 2155 2160 2165 2170 MHz

Band Plan 2.1 GHz – Indonesia after Auction for 2 Additional Block

Rearrangement to get contiguous

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TSEL XL

TSEL XL

New Allocation on February

HCPT Axis TSEL TSEL XL ISAT ISAT XL Axis HCPT

1920 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 MHz

HCPT Axis TSEL TSEL XL ISAT ISAT XL Axis HCPT

2110 2115 2120 2125 2130 2135 2140 2145 2150 2155 2160 2165 2170 MHz

TSEL XL

TSEL XL

Parameters Value

Bit Efficiency 1.29 (HSPA+ Rel7)

Busy Hour average loading (Lbh)

50%

Required user data rate (Rsub)

0.256 Mbps

Overbooking factor (Of) 20 No of sectors per site (Nsec)

3

Bit Efficiency 1.29 Busy Hour average loading (Lbh)

50%

3G Spectrum Demand

Technology Spectral Efficiency per

sector 2G – GSM 0.06 2.5G - GPRS/EDGE 0.11

3G - WCDMA (UMTS) 0.55 3,5G – HSPA 0.82 HSPA Rel 7 1.1 HSPA+ Rel 7 1.29

2,5G CDMA 0.17 2,5G CDMA 1xRTT 0.37 3G-3,5G-EVDO 0.82

4G – LTE 1.3

LTE 2x2 MIMO Rel8 1.5

Spectral efficiency : Dimensioning Parameters :

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Rsub x Market Share x No of total subscriber BW req = Bit Efficiency x no of site x Nsec x Lbh x Of

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Dimensioning Calculation Operator

Band Plan

Technology U/L D/L BW FDD

Spectral Efficiency

Market Share

Total BTS in Jakarta

Total Subscribers in Jakarta

Required BW

Surplus/ Defisit BW

Telkomsel 2100 UMTS/HSPA 2130 - 2135 1940 - 1945 5 1.29 41.10% 1566 4,110,000 17.36 - 2.36

2100 UMTS/HSPA 2125 - 2130 1935 - 1940 5 1.29

Indosat 2100 UMTS/HSPA 1950 - 1955 2140 - 2145 5 1.29 17.50% 810 1,750,000 14.29 -4.29

2100 UMTS/HSPA 1955 - 1960 2145 - 2150 5 1.29

XL 2100 UMTS/HSPA 1960 - 1965 2150 - 2155 5 1.29 17% 756 1,700,000 14.87 0.23

2100 UMTS/HSPA 1965 - 1970 2155 - 2160 5 1.29

HCPT 2100 UMTS/HSPA 1920 - 1925 2110 - 2115 5 1.29 4.80% 463 480,000 6.86 3.14

2100 UMTS/HSPA 1945 - 1950 2135 - 2140 5 1.29

NTS (AXIS) 2100 UMTS/HSPA 1930 - 1935 2120 - 2125 5 1.29 3% 497 300,000 3.99 6.01

2100 UMTS/HSPA 1935 - 1940 2125 - 2130 5 1.29

*ASSUMED Total Subscriber in Jakarta 10 Million

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MINISTRY OF COMMUNICATION AND INFORMATION TECHNOLOGY

REPUBLIC OF INDONESIA

Digital Dividend in Indonesia

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Impact of Broadband on The Economy

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192 MHz

TV Analog Free To Air (FTA)

478 806 MHz 328 MHz

112 MHz

Broadcasting Digitalization Process

Digital Terrestrial TV Free To Air (FTA)

526 694

Future DTV

DIGITAL DIVIDEND

478 806 MHz

Digital Dividend

ANALOG TV ERA

DIGITAL TV ERA

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Spectrum Allocation For Mobile Broadband

APT Report No 24 (Sept 2011)

DIGITAL DIVIDEND

Digital Terrestrial TV Free To Air (FTA)

694 806 MHz 112 MHz

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Frequency Arrangement for FDD

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Digital TV Roll Out Plan : 2012-2017

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Frequency Harmonization With Other Countries

Source : Qualcomm

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Strategy to Accelerate Digital Dividend in Indonesia

• Only less than 7% Spectrum Fee Revenue been used for ICT Sector. The rest is used for general purposes.

• Most of the spectrum fees coming from mobile cellular industry contribution (more than 90%)

• Possible action to request some portion of that revenues for accelerating spectrum refarming including refarming in Digital Dividend

• Need of comprehensive strategic policy and economy campaign to convinces relevant parties (i.e Ministry of Finance, Parliament, etc), i.e: – Mobile Broadband will contribute significant growth in GDP, increasing

productivity and efficiency in transportation, reducing energy subsidy.

• Joint Announcement with Singapore, Brunei and Malaysia to commit to adopt APT band plan on 700MHz (18 June 2013, CommunicAsia )

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Thank you

for your attention…

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Ministry of Communication and Information Technology

Republic of Indonesia